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Callaway Golf Company [NYSE: ELY] opened at $17.43 and closed at $15.90 a share within trading session on 13/06/2019. That means that the stock gained by 14.40% compared to the closing price from a day before, when the stock touched $18.19.

Between the start and the closing of the latest trading session, Callaway Golf Company [NYSE: ELY] had 4.37 million shares being bought and sold. In the last three months, average trading volumes hovered around 1.37M shares. During the last week, volatility in the share price was set at 3.80%, which placed the metric for the last 30 days at 3.07%. The price of the stock additionally went down to $14.44 during that period and ELY managed to take a rebound to $24.67 in the last 52 weeks.

Callaway Golf Company [NYSE:ELY]: Analyst Rating and Earnings

Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Callaway Golf Company [ELY], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give ELY an Outperform rating. Its stock price has been found in the range of 14.44 to 24.67. This is compared to its latest closing price of $15.90.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Callaway Golf Company [ELY] is sitting at 2.08. This is compared to 1 month ago, when its average rating was 2.08.

For the quarter ending in Mar-19 Callaway Golf Company [ELY] generated $0.52 billion in sales. That’s 2.35% higher than the average estimate of $0.5 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.

Pay attention for this company’s financial results, of which the next release is scheduled to happen on Thu 1 Aug (In 48 Days).

Fundamental Analysis of Callaway Golf Company [ELY]

Now let’s turn to look at profitability: with a current Operating Margin for Callaway Golf Company [ELY] sitting at +10.61 and its Gross Margin at +46.52, this company’s Net Margin is now 6.70%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 17.08, and its Return on Invested Capital has reached 13.20%. Its Return on Equity is 15.24, and its Return on Assets is 10.25. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates ELY financial performance.

Turning to investigate this organization’s capital structure, Callaway Golf Company [ELY] has generated a Total Debt to Total Equity ratio of 6.96. Similarly, its Total Debt to Total Capital is 6.51, while its Total Debt to Total Assets stands at 4.79. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 1.04, and its Long-Term Debt to Total Capital is 0.98. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.

What about valuation? This company’s Enterprise Value to EBITDA is 9.64 and its Total Debt to EBITDA Value is 0.33. The Enterprise Value to Sales for this firm is now 1.08, and its Total Debt to Enterprise Value stands at 0.03. Callaway Golf Company [ELY] has a Price to Book Ratio of 2.00, a Price to Cash Flow Ratio of 16.11 and P/E Ratio of 19.54. These metrics all suggest that Callaway Golf Company is more likely to generate a positive ROI.

Shifting the focus to workforce efficiency, Callaway Golf Company [ELY] earns $517,848 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 14.85 and its Total Asset Turnover is 1.22. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.61 and its Current Ratio is 1.73. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.

Callaway Golf Company [ELY] has 94.68M shares outstanding, amounting to a total market cap of $1.72B. Its stock price has been found in the range of 14.44 to 24.67. At its current price, it has moved down by -26.27% from its 52-week high, and it has moved up 25.96% from its 52-week low.

This stock’s Beta value is currently 1.19, which indicates that it is 3.80% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 71.11. This RSI suggests that Callaway Golf Company is currently Overbought.

Conclusion: Is Callaway Golf Company [ELY] a Reliable Buy?

Shares of Callaway Golf Company [ELY], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.